Real Madrid Marketing Hbs Case

Better Essays

Real Madrid is one of the most storied sports franchises in the world. It is one of the few sports teams with international appeal to a very broad fan base. This case delves into how Real Madrid transitioned from a good soccer team with a winning history into the global sports juggernaut we know today.
We first examined Real Madrid’s revenue streams and found that from their inception through the 1970s their business model was based almost entirely on their ticket sales. After the 1970s up until 2003 they had some media rights, a small merchandising department, and some other negligible streams of income. It was in 2003 that team President Florintino Perez decided to make Real Madrid into a
…show more content…
Execution of each stage allowed Real Madrid to take in revenue through several streams such as match day and international competition, marketing(merchandise sold at the clubs web site and stores, sponsorships, fan cards, etc.’), broadcast and pay-tv revenue (Exhibit 1).
The club further evolved to identify 4 brand drivers that Perez stated would “nurture and project the Real Madrid brand worldwide.” The first was the size of the audience, secondly the frequency in which the audience engaged with the brand, thirdly, the socio-demographic characteristics of the audience and lastly, bridges that could be built to link the brand and the audience. Each of these changes reflected the clubs transition to a global brand with marketing capability.
Growth opportunities for Real Madrid existed in both new and existing markets. With content seen as the product, opportunities to provide new content to current markets were available through pay-tv and new technologies like movies, video games and use of the Real Madrid website. The website could also be used to for additional merchandising as well. For new markets, winning on the field was translated to good content and provided Real Madrid with an advantage over other clubs in the battle to recruit new fans from international markets.
The greatest risk to Real Madrid’s revenue streams was the prospect of losing on the field. Ideally, the
Get Access